Suppose that initially there is no public debt. Using the above table, what is the public debt as a percentage of GDP in Year 4?

When a market is monopolistically competitive, the typical firm in the market can earn

a. losses in the short run and profits in the long run. b. profits in the short run and the long run. c. losses in the short run and zero profit in the long run. d. zero profit in the short run and losses in the long run.

Marginal benefits are downward sloping when

A. there are no total benefits. B. the slope of the marginal benefits curve is negative. C. total benefits are increasing at a decreasing rate. D. marginal costs are upward sloping.